SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

3 Months Ended

Mar. 31, 2013

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

NOTE 10 - SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

The Bank has entered into sales of securities under agreements to repurchase.  These obligations to repurchase securities sold are reflected as liabilities in the consolidated balance sheets and consist of one obligations totaling $10.0 million at March 31, 2013. On November 14, 2007, the Bank borrowed $10.0 million under a nine-year repurchase agreement at a fixed rate of 4.40%. All repurchase agreements require quarterly interest only payments with principal and interest due on maturity. The dollar amounts of securities underlying the agreements are book entry securities.  Available-for-sale securities with book values of $12,719,908 and $12,421,961 and fair values of $12,650,450 and $12,450,185 at March 31, 2013 and December 31, 2012, respectively, are used as collateral for the agreement.

Securities sold under repurchase agreements are summarized as follows for the periods ended March 31, 2013 and December 31, 2012:

	2013			2012
Amount outstanding at period end	$	10,000,000		$	10,000,000
Average amount outstanding during the period	10,000,000			17,218,122
Maximum outstanding at any month-end	10,000,000			20,000,000
Weighted average rate paid at period-end	4.40		%	4.40		%
Weighted average rate paid during the period	4.46		%	4.29		%